Coal India’s Q4 margin fell 3.91 points despite 22.91% revenue growth
Costs grew faster than revenue year on year, while other income contributed 35.85% of pre-tax profit; the stock’s initial gain exceeded its usual results-day move.
Filed 27 Apr 2026, 20:31 IST · after market close · Coal India Ltd (COALINDIA)
Key takeaways
- Coal India's consolidated Q4FY26 operating margin fell 3.91 percentage points year on year as expenses grew 29.89%, faster than revenue at 22.91%.
- Net profit rose 13.71% year on year to Rs 10,907.79 cr, but other income contributed 35.85% of pre-tax profit.
- The stock gained 3.20% on the results day, above its 2.43% median absolute move after the last eight results.
Price around the results
Revenue grew, but operating leverage weakened year on year
Coal India’s consolidated revenue grew 22.91% year on year to Rs 46,490.03 cr, but operating profit rose only 7.49% as expenses increased 29.89%. That divergence reduced operating margin by 3.91 percentage points to 27.26%. Sequentially, revenue grew 33.12% and expenses grew 32.13%, allowing margin to recover 0.54 percentage points from Q3FY26.
Profit growth had a significant non-operating contribution
Other income rose 27.71% year on year and accounted for 35.85% of pre-tax profit, making the reported profit increase less reflective of operating performance. Interest expense rose 42.47% year on year, adding to the pressure below operating profit. The tax rate was nearly unchanged year on year, falling 0.05 percentage points, so the 13.71% net-profit growth was not mainly driven by a lower tax rate.
Margin recovered from Q2 but remains below last year’s Q4
Operating margin improved from 22.25% in Q2FY26 to 26.72% in Q3FY26 and 27.26% in Q4FY26, reversing the sharp mid-year decline. It was still below the 31.17% recorded in Q4FY25. Coal India’s margin was 12.67 percentage points above the 14.59% median for the 15 Energy peers that had reported.
The initial market reaction was stronger than Coal India’s usual response
The results were filed after market close, and the stock gained 3.20% on the following session, with a 3.61% gain relative to the benchmark. That was larger than the 2.43% median absolute move seen after the last eight results, when the stock fell five times and rose three times. The gain narrowed to 1.37% after 15 sessions and turned into a 1.39% decline after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹46,490 cr | ₹34,924 cr | +33.12% | +22.91% |
| Other income | ₹5,244 cr | ₹2,680 cr | +95.63% | +27.71% |
| Expenses | ₹33,817 cr | ₹25,593 cr | +32.13% | +29.89% |
| Operating profit | ₹12,673 cr | ₹9,331 cr | +35.81% | +7.49% |
| Operating margin (%) | 27.26% | 26.72% | — | — |
| Interest | ₹344 cr | ₹321 cr | +7.12% | +42.47% |
| Depreciation | ₹2,947 cr | ₹2,218 cr | +32.83% | +5.93% |
| Profit before tax | ₹14,627 cr | ₹9,473 cr | +54.41% | +13.62% |
| Tax | ₹3,719 cr | ₹2,307 cr | +61.23% | +13.36% |
| Net profit | ₹10,908 cr | ₹7,166 cr | +52.22% | +13.71% |
| EPS (₹) | ₹17.59 | ₹11.61 | +51.51% | +12.90% |
Operating margin of 27.26% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.20% | +3.61% |
| Next session | +6.06% | — |
| 5 sessions | +3.91% | +2.92% |
| 15 sessions | +1.37% | — |
| 30 sessions | -1.39% | — |
Volume on the results session was 2.10× its 20-day average.
What to watch
- Whether operating margin holds above 27.26% after its recovery from 22.25% in Q2FY26.
- Whether other income remains below or above its 35.85% share of pre-tax profit.
- Whether interest expense moderates after its 42.47% year-on-year increase.